Question

In the event of a borrower's default, what remedy is available to a Pawnee (Pledgee) compared to a Mortgagee?

Q: Answer-In the event of a borrower's default, what remedy is available to a Pawnee (Pledgee) compared to a M...

A pawnee pledgee holds physical possession of moveable goods and can sell them directly to recover outstanding dues after serving reasonable notice to the pledger. In contrast, a mortgagee as a rule must obtain a decree from a Court of Law before having recourse to sell or enforce security against the mortgaged property.

A The pawnee can seek a decree of foreclosure from a court of law to permanently bar the pledger's equity of redemption.

B The pawnee can sell the pledged goods to realize dues after serving reasonable notice, whereas the mortgagee typically needs a court decree before having recourse against the mortgaged property.

C The mortgagee can sell the property immediately without notice, while the pawnee must transfer physical custody to the government.

D The pawnee automatically gains absolute ownership of the pledged goods without taking any legal steps.

E Neither the pawnee nor the mortgagee has any right to sell or dispose of the secured asset upon default.

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In the event of a borrower's default, what remedy is available to a Pawnee (Pledgee) compared to a Mortgagee?

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